Mauro Products distributes a single product, a woven basket whose selling price is $19 per unit and whose variable expense is $14 per unit. The company's monthly fixed expense is $14.500. Required: 1. Calculate the company's break-even point in unit sales. 2. Calculate the company's break-even point in dollar sales. (Do not round intermediate calculations.) 3. If the company's fixed expenses increase by $600, what would become the new break-even point in unit sales? In dollar sales? (Do not round intermediate calculations.) baskets 1 Break-even point in unit sales 2 Break-even point in dollar sales 3. Break-even point in unit sales Break-even point in dollar sales baskets Lin Corporation has a single product whose selling price is $136 per unit and whose variable expense is $68 per unit. The company's monthly fixed expense is $31,650. Required: 1. Calculate the unit sales needed to attain a target profit of $5,750. (Do not round intermediate calculations.) 2. Calculate the dollar sales needed to attain a target profit of $9,900. (Round your intermediate calculations to the nearest whole number.) units 1. Units sales to attain tiwget profit 2. Dollar sales to attain target profit Molander Corporation is a distributor of a sun umbrella used at resort hotels. Data concerning the next month's budget appear below: Selling price per unit Variable expense per unit Fixed expense per month Unit sales per month $ 24 $ 17 $ 5,740 970 Required: 1. What is the company's margin of safety? (Do not round intermediate calculations.) 2. What is the company's margin of safety as a percentage of its sales? (Round your percentage answer to 2 decimal places (ie. 0.1234 should be entered as 12.34).) Mergin of safety (in dollars) 2. Margin of safety percentage % Miller Company's contribution format income statement for the most recent month is shown below: Sales (38,000 units) Variable expenses Contribution margin Pixed expenses Net operating income Total $ 304,000 190,000 114,000 45,000 $ 69,000 Per Unit $ 8.00 5.00 $ 3.00 Required: (Consider each case independently): 1. What is the revised net operating income if unit sales increase by 11%? 2. What is the revised net operating income if the seling price decreases by $1.40 per unit and the number of units sold increases by 3. What is the revised net operating income if the seling price increases by $1.40 per unit, fixed expenses increase by $9,000, and the number of units sold decreases by 8%? 4. What is the revised net operating income if the selling price per unit increases by 10%, variable expenses increase by 10 cents per unit, and the number of units sold decreases by 10%? 25%? 1. Net operating Income 2 Net operating income 3. Net operating income 4 Not operating income The Cheyenne Hotel in Big Sky, Montana, has accumulated records of the total electrical costs of the hotel and the number of occupancy-days over the last year. An occupancy-day represents a room rented for one day. The hotel's business is highly seasonal, with peaks occurring during the ski season and in the summer. Month Occupancy-Dayu Electrical Coats January 3,240 $ 8,622 Tebruary 3,060 $ 8,228 March 1.150 April 2,260 6.7.684 May 4,310 $10,914 June 1,270 $ 4,318 July 3,410 $9.418 August $ 2,176 September 1,310 $4,454 October 3.760 $ 9.738 1,330 5.4.522 December 2,570 $ 7,868 5 J, 910 640 November es Required: 1. Using the high-low method, estimate the fixed cost of electricity per month and the variable cost of electricity per occupancy-day. (Do not round your intermediate calculations, Round your Variable cost answer to 2 decimal places and Fixed cost element answer to nearest whole dollar amount.) Variable cost of electricity Fixed cost of electricity per occupancy-day per month
